China Hengshi Foundation : - Interim Report 2017

(Incorporated under the laws of the Cayman Islands with limited liability) Stock code : 1197‌‌‌‌‌‌‌‌‌

2017

INTERIM REPORT

Contents

1. Corporate Profile

2. Corporate Information

1. Interim Results Highlights

2. Management Discussion and Analysis

17 Corporate Governance/Other Information

1. Report on Review of Condensed Consolidated Financial Statements

2. Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

3. Condensed Consolidated Statement of Financial Position

26 Condensed Consolidated Statement of Changes in Equity

1. Condensed Consolidated Statement of Cash Flows

2. Notes to the Condensed Consolidated Financial Statements

Corporate Profile

China Hengshi Foundation Company Limited (the "Company") is the world-leading producer and supplier of fiberglass fabrics used in wind turbine blades and is the only PRC-based company among the top three manufacturers and suppliers in the world. The Company has the largest exporting volume of fiberglass fabrics used in wind turbine blades among domestic companies.

As of now, the Company owns three production bases in Zhejiang of China, Suez of Egypt and State of South Carolina of United States (under construction). Its products are exported to countries and areas including Europe, America, Middle East, and Southeast Asia, and enjoy a relatively high credibility in the domestic and overseas markets. We offer five types of fiberglass fabrics: multi-axial fabrics, uni-directional fabrics, woven roving combo mats, stitched mats and E/PP compofil fabrics. Among these products, multi-axial fabrics and uni-directional fabrics are our key products, most of which are used in the wind power generation sector, and the remaining products are mainly sold to customers in a variety of other industries, including transportation, ship manufacturing, water and oil pipelines, building and construction and sporting goods. In recent years, more than 80% of the revenue of the Company was generated from wind power related sector.

2 2017 Interim Report

Corporate Information

BOARD OF DIRECTORS

Non-Executive Directors

Mr. ZHANG Yuqiang (張毓強) (Chairman)

Mr. ZHANG Jiankan (張健侃) Mr. TANG Hsin-hua (唐興華) Mr. WANG Yuan (王源)

Executive Directors

Mr. ZHOU Tingcai (周廷才) Ms. HUANG Junjun (黃鈞筠 )

Independent Non-Executive Directors

Mr. XIE Guoping (謝國平) Mr. PAN Fei (潘飛)

Mr. CHEN Zhijie (陳志傑)

AUDIT COMMITTEE

Mr. XIE Guoping (謝國平) (Chairman)

Mr. WANG Yuan (王源) Mr. PAN Fei (潘飛)

REMUNERATION COMMITTEE

Mr. XIE Guoping (謝國平) (Chairman)

Mr. ZHANG Jiankan (張健侃) Mr. PAN Fei (潘飛)

NOMINATION COMMITTEE

Mr. ZHANG Yuqiang (張毓強) (Chairman)

Mr. XIE Guoping (謝國平) Mr. CHEN Zhijie (陳志傑)

JOINT COMPANY SECRETARIES

Mr. YIN Hang (尹航) Mr. LUI Chi Ho (呂志豪)

AUTHORISED REPRESENTATIVES

Mr. YIN Hang (尹航)

Ms. HUANG Junjun (黃鈞筠 )

REGISTERED OFFICE

190 Elgin Avenue George Town Grand Cayman KY1-9005

Cayman Islands

HEADQUARTERS

No. 1 Guang Yun South Road Tongxiang Economic Development Zone Tongxiang, Zhejiang Province

PRC

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

39/F, Gloucester Tower, The Landmark,

15 Queen's Road Central, Hong Kong

COMPANY WEBSITE

www.chinahengshi.com.cn

STOCK CODE

1197

AUDITOR

Deloitte Touche Tohmatsu Certified Public Accountants 35/F, One Pacific Place

88 Queensway Admiralty, Hong Kong

China Hengshi Foundation Company Limited 3